A widely followed crypto analyst says the largest crypto asset by market cap is in the first entry of its next bull market.
Pseudonymous cryptocurrency trader Rekt Capital says his 345,800 Twitter followers that Bitcoin (BTC) is in the early stages of a bull run.
Further contextualizing his claim, Rekt provides a chart detailing BTC breaking out of a falling wedge pattern and then retesting the upper bound of the wedge to confirm the pattern.
“BTC has closed on a weekly basis right at or just above the Falling Wedge resistance
Either way, BTC may be set to fall to retest the top of this Falling Wedge for support.
A successful retest would confirm the breakout of the Falling Wedge.”
A falling wedge breakout is a technical analysis pattern used to identify possible bullish reversals in the price of an asset. The pattern is characterized by a series of lower highs and lows that form a wedge-shaped pattern on the chart. As the pattern progresses, the distance between the highs and lows decreases, indicating that the selling pressure is weakening. When the price breaks out of the upper trend line of the wedge, it is traditionally considered bullish.
Rekt Capital too says that BTC had a “great” weekly close, with its candle closing just above the $27,000 level.
“Now that’s a very good BTC weekly close
BTC lost ~$27,600 as support two weeks ago and has now positioned for a retest/rally of this same level.
Dipping into the black would be healthy and a successful retest could position BTC for a revisit of ~$28,800″
Zoom Out, Rekt says that in recent months, BTC has broken through a long-term downward resistance that formed in late 2021. The analyst says that Bitcoin is now in an uptrend, at least in the medium to long term.
“The outlook for BTC in the medium and long term is bullish”
BTC is worth $27,627 at the time of writing, down 0.6% in the last 24 hours.
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Featured image: Shutterstock/studiostoks/Boombastic
